Brazil’s Senate Announces the Approval of Bitcoin and Crypto Law

Vignesh Karunanidhi
Brazil’s Senate Announces the Approval of Bitcoin and Crypto Law
Source: NewsBTC

Brazil is expected to approve a bill that will regulate and provide a framework for the cryptocurrency market in the country.

Brazil’s Senate announced that the bill would be approved in the first half of the year by the National Congress.

The bill has been in debate since 2015 in the Chamber of Deputies. The bill has passed the first round of consideration, and the Senate has attached the legislation to another crypto bill. The Economics Committee of the Senate has already approved the bill.

Brazil to join the crypto supporters league

A unified content of the bill would be drafted by legislators Senator Irajá Abreu and Deputy Auero Ribeiro. The crafted text that includes all the proposals would be sent to the Senate.

“I’m doing everything in contact with the Chamber’s rapporteur, who did a great job. The Central Bank’s technical team has also been very helpful. The texts are similiar and converged into one.”

Senator Irajá Abreu

The law, once approved, will not be similar to the one in El Salvador. It would not make Bitcoin a legal tender in Brazil. The approved bill will give power to the Brazilian president to deploy and assign a federal organization that can curate and frame the regulations for cryptocurrency in the country.

The president of Brazil would hold the power to assign the task to the Securities and Exchange Commission, the Bank of Brazil, or he could curate the rules by himself.

The law will ensure that the government will have enough power to regulate crypto to ensure that it is not used for illicit activities and money laundering. All those who misuse cryptocurrencies will be dealt with severe repercussions that include a penalty of at least four to eight years in prison. The bill also highlights that certain exemptions and incentives will be provided to attract miners to the country.